Time Inc slashes dividend in cost-cutting push, shares dive

Candidate Donald Trump signs a magazine with his picture on it at a campaign rally in Raleigh, North Carolina, July 2016. REUTERS/Joshua Roberts

(Reuters) - Time Inc’s (TIME.N) shares plunged 17 percent on Wednesday after the magazine publisher slashed its dividend amid a push to cut costs, following its decision to not sell itself.

The publisher of People and Fortune also reported its fourth straight drop in quarterly sales and a bigger-than-expected loss.

Time said last month it would pursue a strategic plan that included spending cuts and a sharper focus on its digital business.

The company’s decision not to sell itself also ended speculation about a merger with U.S. broadcasting and publishing group Meredith Corp (MDP.N), which according to a source, had offered Time $18 per share.

Time’s shares, which have fallen 17.5 percent since it announced the decision, fell another 17 percent to $12.50 in morning trading.